(Alliance News) - St Modwen Properties PLC on Thursday reported a "strong operational performance" to November 30 in spite of "extraordinary circumstances."
The Birmingham-based property investment business's private forward order book in the year to date increased by 53% to GBP99 million year-on-year.
The St Modwen Homes division sold 948 units, which was an 11% decrease from 1,060 in 2019. However, demand remained strong with an average sales rate of 0.92 per active outlet since May, reflecting the 9 to 10 weeks of lost production in the spring when the company temporarily closed its sites during the UK lockdown.
The company said its completed sales in the second year-half were up by 3% compared to the same period of 2019, despite the social distancing impact on production in June and July. It also saw an approximately 2% improvement in like-for-like pricing since the half-year.
"St Modwen has delivered strong operational results in 2020 and our underlying performance has been in line with the board's expectations. While the near-term economic outlook remains uncertain, momentum has continued to build, so with a strong forward order book in housebuilding, sustained demand for industrial and logistics space and a solid capital base, St Modwen is well positioned going into 2021," said Chief Executive Sarwjit Sambhi.
St Modwen said that if current conditions continue, it would expect volumes to grow by up to 25% and margins to recover substantially in 2021.
The company said it will announce its full year results on February 9, 2021, including its final 2020 dividend. Based on current trading conditions, it envisages this to be in line with its standard policy to pay out approximately 50% of adjusted EPRA earnings per share as a dividend.
Shares in St Modwen Properties were up 1.6% at 387.50 pence in London on Thursday.
By Zoe Wickens; zoewickens@alliancenews.com
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